Village Super Market, Inc. Reports Results for the First Quarter Ended October 30, 2021
December 08 2021 - 7:00AM
Village Super Market, Inc. (NASDAQ:VLGEA) (the "Company" or
"Village") today reported its results of operations for the first
quarter ended October 30, 2021.
First Quarter Highlights
- Net income of $7.3
million, an increase of 118% compared to $3.4 million in the first
quarter of the prior year
- Same store sales
increased 2.3%; on a two-year stacked basis same store sales
increased 9.1%
- Same store digital
sales were flat; on a two-year stacked basis same store digital
sales increased 153%
First Quarter of Fiscal 2022
Results
Sales were $494.2 million in the 13 weeks ended
October 30, 2021 compared to $490.1 million in the 13 weeks
ended October 24, 2020. Sales increased due to an increase in
same store sales of 2.3% partially offset by the closure of the
Silver Spring, Maryland store in February 2021. Increases in
transaction counts were partially offset by decreased basket sizes
and same store digital sales were flat as we cycled against the
initial months following the COVID-19 outbreak in our trade area.
Food inflation and increased Supplemental Nutrition Assistance
Program ("SNAP") benefits continue to positively impact sales.
New stores and replacement stores are included
in same store sales in the quarter after the store has been in
operation for four full quarters. Store renovations and expansions
are included in same store sales immediately.
Gross profit as a percentage of sales increased
to 28.36% in the 13 weeks ended October 30, 2021 compared to
28.15% in the 13 weeks ended October 24, 2020 due primarily to
increased departmental gross margin percentages (.68%), a favorable
change in product mix (.08%) and lower promotional spending (.03%)
partially offset by increased warehouse assessment charges from
Wakefern (.57%). Department gross margins increased due primarily
to pricing initiatives and improvements in commissary
operations.
Operating and administrative expense as a
percentage of sales decreased to 24.54% in the 13 weeks ended
October 30, 2021 compared to 25.37% in the 13 weeks ended
October 24, 2020. The decrease in Operating and administrative
expenses is due primarily to lower payroll costs (.89%) and less
advertising spending (.11%) partially offset by increased external
fees and transportation costs associated with digital sales (.16%).
Payroll costs decreased due to productivity initiatives and labor
shortages despite minimum wage and demand driven pay rate
increases.
Village Super Market operates a chain of 34
supermarkets in New Jersey, New York, Maryland and Pennsylvania
under the ShopRite and Fairway banners and three Gourmet Garage
specialty markets in New York City.
Forward Looking Statements
All statements, other than statements of
historical fact, included in this Press Release are or may be
considered forward-looking statements within the meaning of federal
securities law. The Company cautions the reader that there is no
assurance that actual results or business conditions will not
differ materially from future results, whether expressed, suggested
or implied by such forward-looking statements. The Company
undertakes no obligation to update forward-looking statements to
reflect developments or information obtained after the date hereof.
The following are among the principal factors that could cause
actual results to differ from the forward-looking statements: risks
and uncertainties related to the COVID-19 pandemic, including among
others, the duration and severity of the pandemic, shifts in
customers buying patterns, disruptions to supply chains, inability
of the workforce to work due to illness, quarantine or government
mandates, including travel restrictions and stay at home orders,
the effectiveness and duration of COVID-19 stimulus packages;
general economic conditions; competitive pressures from the
Company’s operating environment; the ability of the Company to
maintain and improve its sales and margins; the ability to attract
and retain qualified associates; the availability of new store
locations; risks, uncertainties and challenges associated with the
Fairway acquisition, including under-performance relative to our
expectations, additional capital requirements, unforeseen expenses
or delays, imprecise assumptions or our inability to achieve
projected cost savings or other synergies, competitive factors in
the marketplace and difficulties integrating the business,
including merging company cultures, cultivating brand strategy,
expansion of food production and conforming the acquired company's
technology, standards, processes, procedures and controls; the
availability of capital; the liquidity of the Company; the success
of operating initiatives; consumer spending patterns; the impact of
changing energy prices; increased cost of goods sold, including
increased costs from the Company’s principal supplier, Wakefern;
disruptions or changes in Wakefern's operations; the results of
litigation; the results of tax examinations; the results of union
contract negotiations; competitive store openings and closings; the
rate of return on pension assets; and other factors detailed herein
and in the Company’s filings with the SEC.
VILLAGE SUPER MARKET, INC.CONSOLIDATED STATEMENTS
OF OPERATIONS(In thousands, except per share amounts)
(Unaudited)
|
13 Weeks Ended |
|
October 30,2021 |
|
October 24,2020 |
|
|
|
|
Sales |
$ |
494,211 |
|
|
|
$ |
490,136 |
|
|
|
|
|
|
Cost of sales |
354,031 |
|
|
|
352,173 |
|
|
|
|
|
|
Gross profit |
140,180 |
|
|
|
137,963 |
|
|
|
|
|
|
Operating and administrative
expense |
121,283 |
|
|
|
124,363 |
|
|
|
|
|
|
Depreciation and
amortization |
8,335 |
|
|
|
8,714 |
|
|
|
|
|
|
Operating income |
10,562 |
|
|
|
4,886 |
|
|
|
|
|
|
Interest expense |
(970 |
) |
|
|
(987 |
) |
|
|
|
|
|
Interest income |
976 |
|
|
|
891 |
|
|
|
|
|
|
Income before income
taxes |
10,568 |
|
|
|
4,790 |
|
|
|
|
|
|
Income taxes |
3,240 |
|
|
|
1,430 |
|
|
|
|
|
|
Net income |
$ |
7,328 |
|
|
|
$ |
3,360 |
|
|
|
|
|
|
Net income per share: |
|
|
|
Class A common stock: |
|
|
|
Basic |
$ |
0.56 |
|
|
|
$ |
0.26 |
|
|
Diluted |
$ |
0.50 |
|
|
|
$ |
0.23 |
|
|
|
|
|
|
Class B common stock: |
|
|
|
Basic |
$ |
0.37 |
|
|
|
$ |
0.17 |
|
|
Diluted |
$ |
0.37 |
|
|
|
$ |
0.17 |
|
|
|
|
|
|
Gross profit as a % of
sales |
28.36 |
|
% |
|
28.15 |
|
% |
Operating and administrative
expense as a % of sales |
24.54 |
|
% |
|
25.37 |
|
% |
Contact: |
John Van Orden, CFO |
|
(973) 467-2200 |
|
villageinvestorrelations@wakefern.com |
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